TMI BlogNorth Eastern Region - FSS, 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... ication' means production of new article(s) by an industrial unit. The sale value of diversified articles should not be less than twenty five per cent of the turnover, during the previous financial year computed at the full registered capacity of the unit. (c) Existing Industrial Unit' means an industrial unit where manufacturing activity has commenced before the date of publication of the Scheme in the Official Gazette. (d) 'Finished Goods' means the goods actually produced by an industrial unit and for which it is registered. (e) 'Industrial Unit' means an industrial unit where a manufacturing activity is carried on. (f) 'Manufacturing Activity' means An activity which brings about a change in non-living physical object or article or thing (i) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (ii) bringing into existence of a new and distinct object, article or thing with a different chemical composition or integral structure (g) New Industrial Unit means an industrial unit where manufacturing activity has com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al production within the period of validity of the scheme. (2) Subsidy under the Scheme will be admissible to eligible industrial units for a period of five years from the date of commencement of commercial production. (3) Eligible industrial units in Micro, Small Medium Enterprises (MSME) Sector, which undergo substantial expansion during the period of validity of the scheme, will be provided subsidy under the scheme for an additional period of five years from the date of commencement of commercial production consequent to substantial expansion, over and above the subsidy already drawn. (4) Existing eligible industrial units located in the selected areas are also eligible for subsidy under the scheme in respect of the additional transport costs of raw materials and finished goods arising as a result of substantial expansion or diversification effected by them after the commencement of the Scheme. Subsidy in such cases will be restricted to the transport costs of the additional raw materials required and additional finished goods produced as a result of the substantial expansion or diversification. 7. Quantum of Subsidy-(1) Unless otherwise specified, the quantum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or, the cost of movement by road from where raw material is being procured to the railway station nearest to it and thereafter by rail from that railway station to the Railway Station nearest to the industrial unit and subsequently by road to the location of the industrial unit, whichever is less, will be taken into account. (c) Reimbursement of 50% of the transport costs for movement of finished goods from one State to another within such selected area. The actual cost of transportation or, the cost of movement from the location of the industrial unit to the nearest Railway Station by road and thereafter by rail to the railway station nearest to the location where the finished goods is to be received and subsequently by road from that railway station to the location where finished goods has been received, whichever is less, will be taken into account. (d) Reimbursement of 90% of transport costs for movement of steel as raw material from Guwahati Stockyard of Steel Authority of India Limited (SAIL) upto the location of the industrial units. (e) Reimbursement of 75% of the air freight on movement of electronic components/products partly by air and partly by raillroad. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anoo upto the location of the industrial units in the State of Himachal Pradesh. (c) 75% of transport costs for movement of industrial raw materials from the State Corporation's designated depots situated in eligible districts of Uttarakhand and Himachal Pradesh to the site of the industrial unit located in the hill districts of the State. (d) In the case of industrial units located in the state of Himachal Pradesh, if movement of electronic components/products takes place partly by air and partly by raillroad, the freight subsidy would be reimbursed @75% on the air freight from Delhi to the airport nearest to the location of the industrial unit and thereafter @75% for movement by rail/road upto the location of the industrial unit and vice-versa. 8. Registration under the Scheme- (1) Industrial unit, desirous of claiming subsidy under the Scheme, shall get registered with the District Industries Centre concerned, prior to the date of commencement of its commercial production for new industrial units or before undertaking substantial expansion for existing industrial unit. (2) The General Manager of the District Industries Centre concerned shall be the competent au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate/Union Territory concerned, nodal agency concerned and Department of Industrial Policy Promotion. Government of India, for disbursement of subsidy, to consider and recommend all subsidy claims, under the scheme, arising in the State/Union Territory. (3) State Government/Union Territory Administration concerned shall draw up procedures and arrangements for scrutinizing the claims for subsidy under the scheme. (4) State Government/Union Territory Administration concerned shall carry out periodical checks to ensure that the raw materials and the finished goods in respect of which subsidy under the scheme has been given were actually used/produced for the purpose by a system of scrutinizing of consumption of the raw materials and the output of the finished goods and cross verification with power consumed, payment of VAT. Excise duty etc. (5) The claim documents submitted by the eligible industrial units shall be scrutinized by the District Industries Centre concerned and their official(s) shall also carry out physical verification of the industrial unit to ensure its physical existence as well as the genuineness of the claim before forwarding its recommendation to Direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is necessary to recommend the eligibility of claimant for the subsidy under the scheme. The Directorate of Industries of the State Government/Union Territory concerned would give a certificate of such verification made by them. (4) SLC shall also ensure that the subsidy being claimed by the unit is not arising out of transportation of raw material and finished goods by their own goods carriers. 12. Nodal agencies - (1) Unless otherwise specified, the respective nodal agencies for disbursement of subsidy under the scheme shall be as follows:- (a) the North East Development Finance Corporation (NEDFi) for the State of Arunachal Pradesh. Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim; (b) the Himachal Pradesh State Industrial and Infrastructure Development Corporation Ltd. (HPSIDC) for the State of Himachal Pradesh: (c) the Jammu Kashmir Development Finance Corporation Ltd. (JKDFC) for the State of Jammu Kashmir and (d) the State Industrial and Infrastructure Development Corporation of Uttaranchal (SIDCUL) for the State of Uttarakhand (2) In the Union Territories of Andaman Nicobar Islands and Lakshadweep. disbursements of subsidy to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e actual freight paid, whichever is less. (2) Cost of loading or unloading and other handlings charges from railway station/airport/port to the site of the industrial unit will not be taken into account for the purpose of determining transport costs. (3) In the case of small industrial units with a capital investment of ₹ 1,00,000 or less, the requirement of production of certificate, regarding the proof of raw materials, 'imported' into and finished goods 'exported' out of the selected States/Union Territoryiareas where the industrial unit is situated, from Chartered Accountant may be waived subject to the condition that such claims are properly verified by the concerned State Government/Union Territory authorities before the subsidy is sanctioned. The State Government/Union Territory authorities would give a certificate of such verification made by them. (4) In the State of Mizoram, if it is not possible for the existing industrial units to furnish a certificate from a registered Chartered Accountant for non-availability of a registered Chartered Accountant, the industrial unit(s) may be asked to provide a certification from the sale tax authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. and issue necessary instnictions for giving effect to these decisions. SHUBHRA SINGH Jt. Secy. ANNEXURE I DESIGNATED RAIL-HEADS under FREIGHT SUBSIDY SCHEME Selected Areas Designated Rail-Heads 1. Jammu Kashmir (i) Jammu; (ii) Kathua; (iii) Udhampur II. Himachal Pradesh (i) Kalka; (ii) Kiratpur Sahib; (iii) Pathankot; and (i) Jagadhiri (Yamuna Nagar) III. State of Uttarakhand comprising of the districts of Dehradun, Nainital, Almora, Pauri Garhwal, Tehri Garhwal, Pithoragarh, Uttar Kashi and Chamoli (i) Rishikesh; (ii) Rampur; (iii) Harrawala; (iv) Jwalapur; (v) Laksar; (vi) Roorkee; (i) Haldi Road; (ii) Rudrpur City; (ix) Bilaspur Road; (x) Kashipur IV. North East Region (including Sikkim) (i) Siliguri; (ii) New Jalpaiguri V. Darjeeling District of west Bengal (i) Siliguri; (ii) New Jalpaiguri ANNEXURE-II NEGATIVE LIST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any registration certificate 12. Land Documents 13. Service tax registration Certificate no. 14. State Electricity Board/Power Department power sanction letter NOC for installation of DG set if applicable 15. Bank Account No. name 16. Capacity assessment certificate indicating quantum of finished goods produced per unit consumption of power and diesel (Joint assessment report by the concerned officers of MSME. Commissioner Industries and Distt. Industries Centre 17. Factory license No. date 18. N.O.C. from local authority (Gram Panchayat. Municipal Corporation etc.) 19. N.O C from Mines Minerals Department if applicable 20. Distance eligibility certificate for Road/Rail/IWT from competent authority 21. Is the unit covered in negative list? ANNEXURE-IV Check-list in which the unit will report to the DIC at the time of each claim of subsidy under Freight Subsidy Scheme, 2013 1. Name address of unit 2. Period of claim 3. Date of receipt of the claim at Distt. Industries Commerce Centre 4. Physical verification report of DI CC 5. Statement of raw material purchased 6. Statement showing utilization of raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing documents are to be enclosed:- (a) Delivery certificate from Railway department if carried by Rail (b) Agriculture cess payment challan in case of raw materials transported by road (where applicable) (c) Quarterly Sales Tax Return covering the claims period authenticated by Sales Tax Deptt. Showing quantity and value (d) All Railway receipt should be in the name of the unit as consignee (e) Raw materials brought from Railway station to factory detailed statement and payment should be made by cheque only (f) Certificate relating to PDS quota for each quota (whether received or not received) from appropriate authority. ANNEXURE-V Matrix to be maintained by the Directorate of Industries for every unit registered under Freight Subsidy Scheme 2013 Name of the Unit:------------------------------------ Date of commencement of commercial production:------------------------------- Period of claim Year-I Year-II Year-III Year-IV Year-V QUATERER QUATERER QUATERER QUATERE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the unit for quantum of subsidy being claimed in terms of percentage? (i.e. 50-90%) 11. is the claim sub-judice? 12. The claim has been cross-checked with other Govt. agencies such as Excise Deptt., Sales Tax Office, State Transport Authority and Electrical Department 13. Subsidy not claimed on by products' 14. Subsidy claimed on finished goods/raw materials does not exceed registered capacity of the firm 15. Claire pertains to manufacturing activity defined under the scheme 16. Case specific checks:- (a) for wood based unit, all conditions laid down by Hon'ble Supreme Court fulfilled (b) no claim for transportation cleared in respect of own vehicle (c) transportation of coke breeze not included by cement producing units (d) claim by four mills is not in respect of wheat purchased from Food Corporation of India 17. Claim of subsidy restricted to actual consumption of raw material and not the total raw material procured 18. Whether all the transaction in respect of cost of transportation, for which claim has been filed by the industrial unit has been through Cheque I Demand Draft I Bank Transfer only? 19. Remarks (if any) Info ..... X X X X Extracts X X X X X X X X Extracts X X X X
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